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Insights into Canada’s Abysmal Post-2000 Productivity Performance from Decompositions of Labour Productivity Growth by Industry and Province

Author

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  • Andrew Sharpe

    ()

  • Eric Thomson

    ()

Abstract

The Centre for the Study of Living Standards has released new estimates of labour, capital and multifactor productivity growth and levels at the market sector, two-digit, and three-digit NAICS industry level for the Canadian provinces during the 1997-2007 period. This article exploits this database to shed light on the nature of the slowdown in labour productivity growth in Canada after 2000. It identifies manufacturing as the sector that has accounted for most of the slowdown. Within manufacturing, transportation equipment and computers and electronics are found to be the industries that accounted for the lion’s share of the sector’s fall-off in labour productivity growth. Ontario was the province that contributed proportionately the most to the slowdown because of the concentration of manufacturing in this province. A fall in manufacturing output growth is identified as the factor most responsible for the decline in productivity growth in the sector.

Suggested Citation

  • Andrew Sharpe & Eric Thomson, 2010. "Insights into Canada’s Abysmal Post-2000 Productivity Performance from Decompositions of Labour Productivity Growth by Industry and Province," International Productivity Monitor, Centre for the Study of Living Standards, vol. 20, pages 48-67, Fall.
  • Handle: RePEc:sls:ipmsls:v:20:y:2010:3
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    File URL: http://www.csls.ca/ipm/20/IPM-20-Sharpe-Thomson.pdf
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    References listed on IDEAS

    as
    1. Jianmin Tang & Weimin Wang, 2004. "Sources of aggregate labour productivity growth in Canada and the United States," Canadian Journal of Economics, Canadian Economics Association, vol. 37(2), pages 421-444, May.
    2. Alvaro Angeriz & John McCombie & Mark Roberts, 2008. "Returns to Scale for EU Regional Manufacturing," Working Papers 20, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    3. John S. L. McCombie & Mark Roberts, 2007. "Returns To Scale And Regional Growth: The Static-Dynamic Verdoorn Law Paradox Revisited," Journal of Regional Science, Wiley Blackwell, vol. 47(2), pages 179-208.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Andrew Sharpe & Bert Waslander, 2014. "The Impact of the Oil Boom on Canada's Labour Productivity Performance," CSLS Research Reports 2014-05, Centre for the Study of Living Standards.
    2. Evan Capeluck, 2016. "A Comparison of Australian and Canadian Productivity Performance: Lessons for Canada," CSLS Research Reports 2016-07, Centre for the Study of Living Standards.
    3. Evan Capeluck, 2016. "A Comparison of Productivity Developments in Canada and Australia: Lessons for Canada," International Productivity Monitor, Centre for the Study of Living Standards, vol. 30, pages 43-63, Spring.

    More about this item

    Keywords

    labour; capital; multifactor productivity; growth; province; industry; manufacturing;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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